Indonesia struggles to find talent despite “relaxed work culture”

Indonesia is facing a talent crunch and businesses are enticing workers with attractive offerings beyond financial compensation, a new report has found.
By: | August 2, 2019

A majority of Indonesian employers are struggling to draw and hire suitable candidates as they seek to grow their businesses. Indonesia has seen foreign direct investment that has introduced new ways of working and created a more conducive culture for local talent.

RGF International Recruitment’s Talent in Asia report has found that talent fluent in both English and Bahasa Indonesia are in high demand currently. Such talent expect high salaries, appealing company culture, and room for career development, and 50% of employers say they are struggling to appease such demands.

Employers said low hiring budgets (19%) was one of their biggest challenges (19%) along with finding talent that fits their company culture (14%). But above all these criteria was finding and attracting talent with strong industry expertise (58%).

In Indonesia, the industrial and technology, Internet and telecommunications sectors are considered the most desirable industries to be employed in. In addition, about 76.5% of talent consider competitive salary and compensation to be the most important factor when searching for a job. The next most important factors for talent are working with “top caliber” colleagues (8.3%), career advancement opportunities (7.2%), and having good health benefits (6.9%).

Peter Chong, managing director of RGF Executive Search Indonesia said businesses have to stand out by focusing on employer branding and showcasing their attraction as an employer – beyond financial compensation – in order to draw talent.